Offers a tax-free means of savings for and paying the qualified medical expenses of the HSA account owner, spouse, and /or dependents.

• BENEFITS
  • Contributions can be deducted from federal/state income tax.
  • Contributions made through a cafeteria plan are non taxable.
  • Tax-free withdrawals for qualified health care expenses for you and your family members.
  • Continue accumulating money and earn interest tax-free year-after-year up to your Medicare eligible age.
  • Contributions can be carried over from one tax year to the next.
  • HSA assets are portable.

• ELIGIBILITY
  • Must have a high deductible health plan
  • Can have no other insurance
  • Cannot have Medicare
  • Cannot be claimed as a dependent on someone else’s tax return

• ACCOUNT OWNERS/BENEFICIARY
• The account holder retains control of the assets within the program regardless of beneficiary’s age. The beneficiary can be changed at any time to another member of the beneficiary’s family.

• CONTRIBUTORS
• Anyone can contribute, and there can be multiple contributors. The most likely are an eligible employee, employer on behalf of the eligible employee, self employed individuals, and any family member on behalf of the eligible person. Contributions can be depostited until April 15th of the following year for prior year medical expenses

• ELIGIBLE MEDICAL EXPENSES
• Any qualified medical expense defined under the IRS section 213(d); i.e. medical deductible, diagnostic services, over-the-counter medicine, and COBRA premiums and premiums for qualified long term care.